first make sure you want them on title they will now have an interest in the property
have a deed prepared going from you as the grantor to you and the new person as grantees, but you need to decide if you want it as tenants in common or joint tenancy with rights of survivorship, sign and notorize then record, best to have a lawyer handle if you are unsure.
If you need a copy of a Deed you can get it at most title companies website. you can go to my site if you would like www.greystreettitle.com it is under legal documents section. If you need help you can contact me.
Seller concessions are common in real estate contracts here. Generally they are for repairs, and the amount a lender will accept is limited. A few thousand dollars for "Cosmetic repairs", "HVAC", "Painting", "Landscaping", or any number of other things that will not cause the lender concerns about the habitability of the property will not raise an eyebrow. Large percentages of the sale price is another matter. And concocting an invoice is fraud; getting money to repaint in a more pleasing color and then deciding you are happy enough with the color it is already is not.
if the house needs repairs, there are banks that will lend up to around 75% of the appraised value on a short-term basis to make repairs, etc...but this is not conventional financing. Conventional financing limits concessions to buyers at 3% i believe.
I closed the deal and made $15,000 thousand dollars. The property needed no work. If a Seller wants to give a Buyer his equity, why is that illegal. The Seller should be able to do what he wants with his money period.
Thanks for all of your comments.[ Edited by GREATLAKESLAND on Date 03/21/2007 ]
As rmdane2000 said, it’s illegal because you’re lying to the lender. That’s pretty obvious.
But you’re right, if the seller wants to give you their equity, that’s fine. However, if you don’t disclose that material fact to the lender, you’ve committed fraud.
I’ll say it again. No matter how you try to disguise it -- it’s still loan fraud.
Am I to understand from the above posters that it is illegal to receive any cash back at closing?
I am in the process of doing a cash out refinance to 90% of FMV on a couple of investments properties and I will definitely be receiving cash back once the other leins are paid. Is this illegal or is it okay since (I believe) the lender is aware.
As rmdane2000 said, there’s nothing at all wrong with that.
The above posts are about people lying to a lender, falsifying documents, or deliberately not disclosing material facts to get a loan or cash back on a purchase.
If you have individual contracts with the seller and the buyer fully dislcosing what your doing and then have the buyer and seller pull the two contracts togeather under a third contract how is that fraud. Why should only brokers be able to corner the market. What happened to free entrprise. fully disclosed
Although these cash outs are done for pure finanacial gain, their is nothing illegal with it. As long as the apprasial is correct and the buyer isnt lying about income; its really none of the lenders business how the seller and buyer split proceeds. They have a 80 or 90% loan that they will only sell to the market in a few weeks.
Not to bring open up wounds, but rmdane and mcole, only made the negative statements because of the way she presented her cash back situation, rsmith presented a similar situation...and it was all good...go figure. Dont take all advice you get on this board as being set in stone.
I do not understand if (1) some people have no logical thought process (2) or if people can rationlize their actions to the point of fogging their logical thought process.
Taking out a loan and not fully disclosing all the closing transactions on the HUD1 is loan fraud. Loan fraud is against the law.
What is so hard to understand about the above statement?
Probably a Quitclaim Deed.
first make sure you want them on title they will now have an interest in the property
have a deed prepared going from you as the grantor to you and the new person as grantees, but you need to decide if you want it as tenants in common or joint tenancy with rights of survivorship, sign and notorize then record, best to have a lawyer handle if you are unsure.
Thanks for the insight.
If you need a copy of a Deed you can get it at most title companies website. you can go to my site if you would like www.greystreettitle.com it is under legal documents section. If you need help you can contact me.
Tammy
Seller concessions are common in real estate contracts here. Generally they are for repairs, and the amount a lender will accept is limited. A few thousand dollars for "Cosmetic repairs", "HVAC", "Painting", "Landscaping", or any number of other things that will not cause the lender concerns about the habitability of the property will not raise an eyebrow. Large percentages of the sale price is another matter. And concocting an invoice is fraud; getting money to repaint in a more pleasing color and then deciding you are happy enough with the color it is already is not.
Chris
No matter how you disguise it, it’s still loan fraud. Otherwise, you wouldn’t need to create a phony invoice.
if the house needs repairs, there are banks that will lend up to around 75% of the appraised value on a short-term basis to make repairs, etc...but this is not conventional financing. Conventional financing limits concessions to buyers at 3% i believe.
I closed the deal and made $15,000 thousand dollars. The property needed no work. If a Seller wants to give a Buyer his equity, why is that illegal. The Seller should be able to do what he wants with his money period.
Thanks for all of your comments.[ Edited by GREATLAKESLAND on Date 03/21/2007 ]
As rmdane2000 said, it’s illegal because you’re lying to the lender. That’s pretty obvious.
But you’re right, if the seller wants to give you their equity, that’s fine. However, if you don’t disclose that material fact to the lender, you’ve committed fraud.
I’ll say it again. No matter how you try to disguise it -- it’s still loan fraud.
Am I to understand from the above posters that it is illegal to receive any cash back at closing?
I am in the process of doing a cash out refinance to 90% of FMV on a couple of investments properties and I will definitely be receiving cash back once the other leins are paid. Is this illegal or is it okay since (I believe) the lender is aware.
Thanks for your opinion.
JS.
nothing at all wrong with that.
As rmdane2000 said, there’s nothing at all wrong with that.
The above posts are about people lying to a lender, falsifying documents, or deliberately not disclosing material facts to get a loan or cash back on a purchase.
But a cash-out REFI is fine.
If you have individual contracts with the seller and the buyer fully dislcosing what your doing and then have the buyer and seller pull the two contracts togeather under a third contract how is that fraud. Why should only brokers be able to corner the market. What happened to free entrprise. fully disclosed
Although these cash outs are done for pure finanacial gain, their is nothing illegal with it. As long as the apprasial is correct and the buyer isnt lying about income; its really none of the lenders business how the seller and buyer split proceeds. They have a 80 or 90% loan that they will only sell to the market in a few weeks.
Not to bring open up wounds, but rmdane and mcole, only made the negative statements because of the way she presented her cash back situation, rsmith presented a similar situation...and it was all good...go figure. Dont take all advice you get on this board as being set in stone.
I do not understand if (1) some people have no logical thought process (2) or if people can rationlize their actions to the point of fogging their logical thought process.
Taking out a loan and not fully disclosing all the closing transactions on the HUD1 is loan fraud. Loan fraud is against the law.
What is so hard to understand about the above statement?
I think I’m the Twilight Zone.
(lol-lol)